Cathedral drill program discovers more reserves

The mine produced 8,500 oz last year at a cost of $230(US) per oz (including depletion) and this year’s output is expected to be 10,000 oz. Reserves are sufficient for a 5-6 year mine life at present production levels, the company said.

Open pit and underground mining methods are presently being used but future production will be strictly from underground operations. According to Chairman Hugh Morris, the changeover “will require increased capital expenditures which are more than justified given our encouraging exploration results in the underground extensions of the orebody.”

The Sterling mine has been producing since 1980 and to date 65,000 oz have been recovered from 333,000 tons of ore grading 0.23 oz gold. Gold recoveries have averaged 83.6%, the highest for any heap leach operation in Nevada, the company said.

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